Page 1

GR RIVCAPITAL RIV Capital Reports First Quarter Fiscal Year 2022 Financial Results Cash balance of $ 212.5 million as at June 30th after completion of multiple monetization events during the quarter PharmHouse Credit Facility fully settled ; Company anticipates receiving ~ $ 6.5 million distribution upon termination of CCAA proceedings Strategic investment from The Hawthorne Collective announced subsequent to quarter end , further strengthening the Company's balance sheet and allowing for future platform differentiation Company continues to focus on acquisition and investment opportunities to establish and develop multistate cannabis operating and brand platform / CNW / - RIV Capital Inc. ( " RIV Capital " or the " Company " ) ( TSX : RIV ) ( OTC : CNPOF ) today released its unaudited condensed interim consolidated financial statements and management's discussion and analysis ( " MD & A " ) for the three months ended June 30 , 2021 ( " Q1 2022 " ) . TORONTO , Aug. 16 , 2021 " Throughout the first quarter , we remained focused on identifying and evaluating opportunities in the US cannabis market , " said Narbé Alexandrian , President and CEO , RIV Capital . " Last week's announcement of a US $ 150 million investment in RIV Capital from The Hawthorne Collective , a subsidiary of The ScottsMiracle - Gro Company , was the first step in executing on our growth strategy . It strengthens our balance sheet and leverages RIV Capital's cannabis domain knowledge with ScottsMiracle - Gro's expertise in operations , R & D , sales , and distribution . " " In the coming quarters , we plan to work through our pipeline of near - term prospects with the goal of executing our US launch strategy to provide sustainable , long - term value and contribute to the development of a leading multistate cannabis operator and brand platform , " added Alexandrian . Q1 2022 Financial Results Select Summary of Quarterly Results 1 Operating income ( before equity method investees and fair value changes ) Operating expenses Net operating loss ( before equity method investees and fair value changes ) Equity method investees and fair value changes ( 1 ) PharmHouse - related charges ( recovery ) Net operating loss Net loss Other comprehensive income ( loss ) ( net of tax ) Total comprehensive income ( loss ) Basic loss per share ( " EPS " ) Diluted EPS 1 The financial highlights in this summary are presented in CA $ thousands , unless otherwise noted . Operating Income and Expenses Royalty , interest , and lease income ( before provisions ) Provision for credit losses on interest and royalty receivables Operating income ( before equity method investees and fair value changes ) General and administrative expenses Three months ended 30 - Jun - 21 566 ( 127 ) 439 $ $ $ $ $ $ Cash flows used in operating activities Cash flows provided by ( used in ) investing activities Cash flows provided by ( used in ) financing activities ( 1 ) Excludes the Company's share of loss on its investment in PharmHouse common shares , which is reflected in " PharmHouse - related charges ( recovery ) " $ Three months ended 30 - Jun - 21 439 2,510 ( 2,071 ) ( 36,532 ) ( 1,935 ) Three months ended 30 - Jun - 20 2,667 ( 5 ) 2,662 1,666 $ " One of our primary objectives during the first quarter was optimizing our balance sheet for our strategic shift to the US , " said Eddie Lucarelli , Chief Financial Officer , RIV Capital . " With approximately $ 112.3 million in total proceeds received from monetization events , combined with the additional capital and new strategic partnership we recently announced , we are uniquely positioned to build a differentiated platform in the world's most exciting cannabis market . " ( 36,668 ) ( 30,421 ) ( 492 ) ( 30,913 ) 1,342 $ ( 0.21 ) $ ( 0.21 ) $ ( 20,247 ) 104,816 1 Three months ended 30 - Jun - 20 2,662 2,669 ( 7 ) 2,063 4,418 ( 2,362 ) ( 3,426 ) 10,701 7,275 ( 0.02 ) ( 0.02 ) ( 807 ) ( 1,927 ) ( 78 )